A study from Curtin University, in partnership with the University of Western Australia, the Planning and Transport Research Centre, and Open Corridor, has reported that Western Australia’s resource use exceeds the global average, making it one of the highest per capita consumers of raw materials.

Western Australia is highly reliant on finite resources and their extraction, such as the mining and petroleum industries, which contribute significantly to GDP. Western Australia’s resource use exceeds the global average, and this over-reliance creates economic vulnerabilities, including exposure to global commodity price fluctuations and potential job losses in downturns.

Environmental degradation is a significant consequence, with land degradation, biodiversity loss, and increased greenhouse gas emissions High water and energy consumption associated with resource extraction further strains natural ecosystems. Calls for economic diversification are growing, urging investments in renewable energy, advanced manufacturing, and technology sectors. A strategic shift is crucial to ensure long-term economic resilience, environmental sustainability, and a stable workforce.

Western Australia’s Resource Consumption

Western Australia is a naturally resource-rich region. Constituents in the years 2021-22, the mining and resources sector contributed $99 billion to the Australian economy. The research reported that from 2023 to 2024, the resources sector recorded $238 billion in mineral and petroleum sales. The industry employs 134,871 full-time workers. In the global context, Western Australia’s per capita resource use far exceeds global averages.

These prove how integral iron ore, lithium, and natural gas exports are to Western Australia’s economic growth. The region’s per capita resource use far exceeds the global average, highlighting an outsized impact on global resource utilization.

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Environmental Impact and Sustainability Concerns

Greenhouse gas emissions from resource extraction contribute to high carbon emissions, which affect climate targets. Lifting the onshore gas export ban could further increase emissions. Greenhouse Gas Emissions are a long-term effect of unregulated resource consumption. Western Australia’s mining and resource sector is a major contributor to emissions, accounting for over half of the state’s total greenhouse gas emissions.

The iron ore, natural gas, and coal industries are the biggest polluters, emitting millions of tons of CO₂ annually. Western Australia is Australia’s largest Liquefied Natural Gas (LNG) exporter. The recent lifting of the onshore gas export ban could lead to a surge in emissions, further straining the state’s climate commitments. This directly impacts Australia’s previously committed climate targets to net-zero emissions by 2050, which faces challenges due to WA’s high fossil fuel dependence.

The expansion of gas projects like Woodside’s Scarborough LNG adds to the annual emissions of carbon emissions. Biodiversity loss from deforestation and habitat destruction from WA’s mining industry has cleared fragile ecosystems and land, leading to irreversible damage to ecosystems. The Jarrah Forests, home to endangered species like the Carnaby’s Black Cockatoo, face increasing threats due to bauxite mining.

These expansion projects threaten native wildlife in the fragile ecosystems of Western Swamp. The Tortoise, Numbat, and Bilby are at risk due to habitat fragmentation. Land clearing for mining activities in these regions increases soil erosion and disruptions of natural food chains, leading to a decline in native and unregulated species populations.

Due to the failure to restore these lands despite regulations, many mining sites remain unrehabilitated, leaving vast barren landscapes. Mined land in WA has not undergone proper ecological restoration.

The removal of millions of liters of groundwater daily for mining leads to long-term depletion of aquifers. Toxic waste runoff from mining sites can contaminate freshwater sources, leading to world acid mine drainage issues, which poisons rivers and groundwater.

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Economic Implications of High Resource Use

Western Australia’s economy forms the backbone but is still vulnerable to global shocks like any other global economy. The resource sector contributes nearly 50% of the total economy, supporting thousands of jobs and infrastructure projects.

Fluctuations in global commodity prices directly impact state revenues, leading to budget surpluses during booms and deficits during downturns. The 2012 mining downturn saw WA’s budget reach a deficit, demonstrating the risks of overreliance on resource exports.

The “Dutch Disease” effect is an economic theory where the booming mining industry drives up the Australian dollar, making non-mining sectors like manufacturing and agriculture less competitive globally. WA’s economy remains heavily skewed towards mining, limiting investment in diverse industries such as technology, renewable energy, and advanced manufacturing. This also develops an employment paradox. While mining provides high wages, technological advancements are reducing long-term job opportunities.

Rio Tinto and BHP have implemented autonomous haul trucks and robotic drilling, cutting hundreds of jobs in recent years. Western Australia also has an export dependency on China. China imports over 80% of WA’s iron ore, making it the state’s largest trade partner.

Economic slowdowns in China or policy shifts—like Beijing’s push for domestic steel production—pose major threats to WA’s economy. Trade tensions and geopolitical risks Australia’s past trade disputes with China, including tariffs on wine and barley, highlight the risks of relying on a single export market. The global transition away from fossil fuels could reduce long-term demand for LNG exports, forcing the state to diversify its economic base.

Boom-and-bust cycles from the unpredictable world economy of iron ore price surge in 2021 brought record revenues for WA, but prices have since dropped, underscoring the volatility of the industry. The 2023 decline in lithium prices impacted WA’s emerging battery minerals sector, showing that commodity dependence comes with risks.

In Conclusion

Western Australia must arrive at an economic and environmental balance to support the local industries and the development of other sectors, preserve the ecosystems, and safeguard environmental consequences, including biodiversity loss, carbon emissions, and water depletion.

By acting now, WA can secure both economic strength and environmental integrity, setting a global example for resource-rich economies.

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